Tuesday, July 26, 2016

It has been said that change is the only constant. Most of the financial experts have been expecting interest rates to increase along with home prices. While homes, in most markets, have definitely seen increases over the past five years, the mortgage rates today are actually lower than they were a year ago.

If the interest rates were to increase by 1% over the next year while homes appreciated at 6% during the same time frame, a $250,000 home would go up by $15,000 and the payment would be $211.53 more each month for as long as the owner had the mortgage. The increased payments alone would amount to $17,769 for the next seven years.

When facing a decision to postpone a purchase for a year, a legitimate question to ask oneself would be: “how will it feel to have to pay more to live in basically the same home a year from now?”

It is easy to understand that if the price of a $250,000 home goes up by 6%, it increases the price by $15,000. A slightly more difficult concept to realize is that if the interest rate were to go up by ½%, it is approximately equal to a 5% increase in price. A 1% increase in mortgage rates would approximately equal a 10% change in price. This means that if a home goes up in price by 6% and the interest rate goes up by 1%, it is equivalent to the price of the home going up by a little more than 16%.

Use the Cost of Waiting to Buy calculator to estimate what it might cost to wait to purchase based on your own estimates of what interest rates and prices will do in the next year.

Thursday, July 21, 2016

While all contracts must have certain required elements, mutual assent, consideration, capacity and legality, there are some things that increase its chance of being accepted.

The seller generally wants the highest possible price with the fewest inconveniences in the shortest period of time. In the same way, the buyer generally wants the lowest possible price with the fewest inconveniences in the shortest period of time.

The perspective of the principal can change depending on how these different parts of an agreement are structured.

Offer Price - While the price of the home seems to be the major point of contention in a home negotiation, the seller’s net proceeds and the buyer’s mortgage payment may actually be more critical.

Financing - 86% of buyers financed their recent home purchase as opposed to the 14% who paid cash. Some financing has higher fees than other types of financing and in some instances, sellers must pay the additional charges on behalf of the buyer.

Concessions

Seller-paid closing costs – paying all or part of a buyer’s closing cost requires less cash outlay for the purchaser and makes it easier or more appealing for them to buy the home.

Seller-paid buydown – prepaying interest to the lender on behalf of the buyer gives them lower payments for the first one, two or three years even though they must qualify at the note rate of the fixed-rate mortgage.

Personal property – seller may agree to include existing or new personal property like washer, dryer or refrigerator.

Improvements – seller may agree to make modifications to the existing condition of the home like floor covering, countertops, appliances, painting or other things.

Earnest Money – more money gives the seller a sense that the transaction is more likely to close while putting the least amount at risk is generally, more appealing to the buyer.

Timing – depending on which party is more flexible, sometimes an earlier or later closing or a position on occupancy can be an offsetting consideration that can balance the differing terms.

Contingencies or lack thereof – requirements that must be satisfied before the contract can be closed.

The training and experience of a skilled negotiator can benefit both buyers and sellers to save time, avoid difficulties and bring all parties to an agreement. Your real estate professional should be able to help you structure a good offer and negotiate a win-win situation.

Tuesday, July 12, 2016

Asking the right questions will lead to the answers that help you determine which agent to use for one of the largest investments that most people make…the purchase or sale of their home.

Rudyard Kipling wrote the verse “I keep six serving men, they taught me all I knew; their names were what and why and when and how and where and who.” Prefacing your questions with one of these words can help you get the information you need to make a good decision about the REALTOR® you use.

How long have you been selling homes and is this your full-time job?

What designations or other credentials do you have?

How many homes did you and your company sell last year?

What is your average market time compared to MLS and your top competitors?

What is your sales price to list price ratio?

When will you report to me on the progress of my transaction?

Who can you recommend for service providers like mortgage, inspections, repairs and maintenance?

Why do you want to work with me?

Where are the biggest opportunities to expose my home to the largest market?

Finding the right person to represent you is a little like the person who ordered a lobster dinner at a restaurant. When the waiter brought out the meal, the lobster only had one claw. The customer asked why it only had one claw and the waiter said: “I don’t know; I guess it was in a fight.” The customer looked at him and said: “then, bring me the lobster who won.”

Friday, July 8, 2016

Congratulations
to this beautiful couple and their family on purchasing their first home!

Click to hear their VIDEO TESTIMONIAL! Here what they had to say about their SOLDbyNat.com experience.

If
you are looking to buy your 1st home, here are some tips:

1)Know what your credit looks like. – You'd be surprised how many people start looking for houses or wander into new home sales centers without having a clue if they will be approved for a mortgage.

2)Identify an agent you want to work with. – Like
in life, people are individuals who are uniquely different. Look for someone
that is a good fit for you and vice versa. Also make sure they are knowledgeable and can help you achieve your goa!

3)Speak to a lender and get Pre-Approved. – This is a top-priority BEFORE you start looking at properties. Why? Refer to #1.

4)Understand the market. – Is it a buyer's market or a seller's market? What are the interest rates? What is the average Days on Market for the area you want to buy in? Wondering, why all of these matters? Refer to #2. You're Realtor will be able to explain how all of these factors will affect your house hunt. Don't have a Realtor, contact me :-)! *Even outside of Georgia, I can assist you.

5)Be ready to act. – Depending on the market, you may not have time to "maul it over". In some markets, buyers are putting offers in sight-unseen.

6)Know what you’re looking for. – What are your
“Must Haves” vs. “Wish List” vs. “Deal Breakers”? This will be the structure for your house hunt. If you know you need 5 bedrooms, no need looking at 3 bedrooms. If you want everything in pristine condition, no need looking at foreclosures. You follow?...

7)Have more funds than you think you’ll need. –
Funds for earnest money, inspection, down-payment, closing costs, turning on
utilities, moving, filling a starter home, etc. Have a little cushion. This will make your experience more enjoyable. And for those looking to purchase a home with no money out of pocket, it's not happening! You will need money even if you're getting down-payment assistance.

8)Be prepared to hear everyone’s input. – Some input will be requested, others won't. When you get confused, refer back to #6 to gain your focus. And remember that you will be the one living in the house and responsible for the mortgage. You have to be comfortable with your decision.

9)Know this is a stressful process. – I use to say, "Homebuying may be a stressful process". Now I changed the MAY to WILL! Just be prepared for it. Think about it? Buying a home is the largest purchase the average person will make in their lifetime. It's a process which includes a lot of moving parts. In a perfect world, everything will align and go exactly as planned. However, we know that rarely ever happens...

10)Enjoy the journey! – Though it will be stressful at times, try to keep the big picture in mind. Years from now, you're going to look back on the memories that got you (and your family) to the place you are now. Try to capture as many positive memories as possible!

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www.SOLDbyNat.com ~ I am a Realtor and Home Stager. I pride myself in being a guide to my clients and I’m fulfilled by helping them achieve their goals. NOT LOCAL? NO PROBLEM! I can still help...ask me how.